Advanced Energy Industries, Inc. announced today that it has started to explore strategic alternatives for its Solar Inverter business. The company is considering various options including a sale, joint venture, partnership, licensing or other alternatives including additional product line optimization and rationalization, in order to maximize shareholder value.
"As part of our annual strategic planning process, we reviewed our entire business to determine the best portfolio mix to achieve our strategic objectives and build shareholder value. We concluded that the Solar Inverter business as currently configured required a review of our strategic alternatives to capitalize on its strong product portfolio and customer relationships," said Yuval Wasserman, President and Chief Executive Officer.
The company plans to continue offering its inverter products and services, and supporting its customers during this process. There can be no assurance that the company will enter into a transaction in the future. The company does not plan to disclose or comment on developments until it deems further disclosure to be appropriate.
As a result of the company's strategic review and resulting retirement of certain central inverter legacy products, the company expects to record a non-cash inventory charge of between $10 and $14 million in the fourth quarter. This non-cash inventory charge will reduce net income and earnings per share on a GAAP-basis for the fourth quarter and full year 2014, but the company expects to exclude this charge from its calculation of non-GAAP net income and non-GAAP earnings per share for such periods, as a non-cash, non-recurring charge.